Shufersal profit soars – Globes

The deep discounts made by the new owners of the Shufersal supermarket chain, brothers Yossi and Shlomi Amir, have begun to pay off for them and their shareholders, in a big way. This morning, Shuversal announced a very sharp rise in third-quarter profits.

Shufersal recorded a net profit in the third quarter of this year of NIS 237 million, which represents a significant increase of 374% compared to the corresponding quarter of 2023. In the first nine months of 2024, net profit reached NIS 496 million, an increase of 175% from It is in 2024. The corresponding period of last year. The profit growth was due to improvement in the chain’s gross profit margins and strict management of expenses.

Shufersal’s revenues rose 6.3% in the third quarter to NIS 1.4 billion. Same store sales rose 6.5%. The gross profit margin was 28.5%, compared to 26.2% in the corresponding quarter. Online sales grew more slowly than general sales, accounting for 17.1% of the total, down from 17.9% in the corresponding quarter.

Operating profits rose to 330 million shekels, more than double the operating profits of 139 million shekels in the corresponding quarter.

The big contribution to Shufersal’s third-quarter profits came from the sale of its 50% stake in payments app Paybox to Discount Bank for NIS 77 million. Shufersal recognized a pre-tax gain of NIS 44 million from the deal. Shufersal also benefited from gains from the revaluation of its properties worth 10 million shekels, and from the sale of non-financial assets worth 10 million shekels.

Shufersal has 431 branches throughout Israel, employing 15,300 people. Its commercial area is 553,000 square meters. The number of customer club members is 2.1 million, and 665,000 are holders of its credit cards.

So far this year, Shuversal’s stock price has more than doubled. The company’s market value is 9.2 billion shekels. The Amir brothers’ 24.99% stake was worth NIS 2.3 billion at this morning’s opening, 44% more than the total they paid for it.

Published by Globes, Israel Business News – en.globes.co.il – on November 26, 2024.

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